this post was submitted on 20 Oct 2023
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Hear about how much debt everyone in the US has all the time, curious about some of your stories!

My bad debt is 10k left on a school loan from a for profit school that is now out of business.

Only other debt is house.

So how are you all doing with debt management?

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[–] [email protected] 7 points 1 year ago (1 children)
[–] [email protected] 4 points 1 year ago (3 children)

Whats an example of good debt?

[–] [email protected] 7 points 1 year ago (1 children)

If someone offered you a loan right now at 1% interest, you could take it, put it in a savings account, and get 4% interest. For a net gain of 3% on whatever the loan amount is. That's the most basic example of good debt.

[–] [email protected] 0 points 1 year ago (1 children)

If you are making money off it then is it really debt?

[–] [email protected] 3 points 1 year ago

Yes, because you owe someone else money.

[–] [email protected] 5 points 1 year ago* (last edited 1 year ago) (1 children)

Investment mortgage debt is good if it contributes to tax deductible claims. Owner-occupied debt is good if it’s managed properly. Both are good because you own an appreciating asset.

Credit card debt is good if you don’t hit payable interest, leaving your money to work for you in other ways.

Commodity debt is good if the market swings in your favour.

Business debt is good if it results in surplus revenue generated.

Education debt is good if it’s contributing to future and higher employment gains.

Basically all debt is good if it’s managed properly and results in a net gain somewhere.

[–] [email protected] -2 points 1 year ago (1 children)

So what im seeing is debt is only good in specifc circumstances, so it's better to not have debt

[–] [email protected] 1 points 1 year ago

...you're claiming that because some debt is good and some debt is bad, all debt is bad? Your first statement quite literally negates your second statement.

[–] [email protected] 4 points 1 year ago* (last edited 1 year ago)

Already being rich enough to afford ~~good~~ profitable debt.